External/Internal Factors

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�PAGE � �PAGE �7� External/Internal Factors

External/Internal Factors

Carl R. Foster

MGT 330

Linda Fisher-Lewis

December 2, 2008

University of Phoenix

External/Internal Factors

The purpose of this paper is to ask and answer the questions, how do internal and external factors impact the four functions of management (planning, organizing, leading, and controlling), and how does globalization, technology, innovation, diversity, and ethics impact each of the four areas. Also, explain how managers can use delegation to manage the different factors listed above.

There are many external and internal factors that impact the four functions of management. External and internal factors have an enormous impact on organizations productivity. The process of assessing external and internal factors that an organization will face is vital to the planning function of management. An internal and external environmental assessment develops understanding of the processes that will influence an organizations success rate. The purpose of an environmental assessment is to identify and analyze the key trends, forces, and phenomena having potential impact on the formulation and implementation of strategies. In effect, the environmental assessment attempts to prepare the organization to acclimatize the environmental changes to take advantage of opportunities and minimize the adverse effects of threats. The organization can then prioritize issues, constraints, and assumptions that could influence the four functions of management. External factors are such that many if not all are beyond the organizations control.

The process of globalization encompasses combinations of economics, technological, innovation, socioculture, and political influences. The external and internal influences can be felt in several different ways with globalization. The economic ramifications can be felt based on the freedom of exchange of goods and services while being influenced by the emergence worldwide production and financial markets. Such emergences would include political, social, and economic influences.

Technological and innovation are enhanced with the development of infrastructures on a global basis allowing a greater flow of information through technologies such as the internet, and communication satellites. Standards can be applied globally. While it is easy to look at the positive external aspects of globalization and the great benefits that are apparent everywhere, there are also negative occurrences that can only be the result of or major factors that encourage some companies to globalize. Globalization has affected work force demographics. In fact, management diversity has become a primary issue in the 21st century. Trends such as outsourcing and off shoring are a direct offshoot of globalization and have created a work environment in which cultural diversity has become problematic. With information globalization (internet), this influential tool has been a powerful source for blowing down cultural boundaries. Companies such as Google, Nike, and Microsoft are great examples of how globalization, technology, Innovation, diversity, and ethics apply used in the four functions of management. Another stunning example of globalization is the increased interest in the use of Chinese symbols in tattooing (body art) which has seen an increase in popularity amongst the younger generation.

In the world of globalization, today's companies cannot succeed with out incorporating into the four functions of management, the astonishing technologies, innovations that exist and continue to evolve. These technologies and innovations create new products and better ways of managing and communicating. Advances in technologies allow companies to enter into markets that would otherwise be unavailable to them. Tele-conferencing using the internet has allowed managers to not have to travel when training or conducting other business.

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